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Senate committee clears bill letting state higher-education institutions pass credit-card fees to cardholders
Summary
A Utah Senate education committee recommended favorably on SB 17, which would allow state-run higher education institutions to pass credit-card processing fees to cardholders; lawmakers and witnesses debated impacts on retail purchases and low-income students.
A Utah Senate education committee voted to recommend Senate Bill 17, a measure that would let state-run higher education institutions pass credit-card processing fees on to cardholders rather than absorb the cost.
The bill’s presentation said institutions currently absorb processing charges and that passing them through could reduce state expenditures; the presenter noted such charges can be "3 to $4,000 every single month." A student, Ella Fransen, told the committee that she prefers fees folded into posted prices because it makes budgeting easier: "Like everyone hates extra fees…it's a lot easier if it's just included in the upfront price." Nate Talley, deputy commissioner and CFO for the Utah System of Higher Education, told the committee the bill does not require institutions to pass fees to students and that the measure was responsive to a 2024 Office of the Legislative Auditor General performance audit on credit-card processing.
Committee members raised practical concerns about retail transactions on campus. Senator Fillmore said the bill made sense for tuition but worried about concession-stand and bookstore purchases, noting that businesses already price for overhead including processing fees. He and other legislators pressed whether the policy would allow universities to charge small purchases such as textbooks or concessions an extra percentage, and whether that would be reflected in posted prices or serve as a separate surcharge.
Public comment was limited but included students who urged caution. After committee questions and public testimony, Senator Hinkins moved to recommend the bill. The committee voted 3–2 to send SB 17 to the full Senate with a favorable recommendation; the transcript records Reby and Fillmore as voting no.
The bill’s fiscal note and institutional implementation details were discussed; the Utah System of Higher Education said it would discourage passing fees directly to students where doing so would reduce affordability. The committee did not amend the bill at this hearing. The bill now advances to the full Senate for further consideration.
